Blockbuster Kiosks Headed To 555 Quiktrip Stores

NCR Corp. is expanding its Blockbuster Express movie rental kiosks to 555 QuikTrip stores in nine states.

The deal is part of Blockbuster and NCR's ongoing attempts to help Blockbuster gain market share against kiosk competitor RedBox.

The news comes several days after Blockbuster successfully negotiated an agreement with creditors to delay a $42.2 million payment due on July 1.

NCR Corp. builds and operates ATM machines and digital kiosks. The Georgia-based company forged a relationship with Blockbuster in 2008 to expand the movie rental giant's name in the kiosk segment through a business agreement in which NCR operates Blockbuster Express-branded kiosks in front of major retail outlets and convenience stores. The company did not disclose terms of the latest kiosk expansion deal.

At least one analyst, Michael Pachter with Wedbush Morgan, is skeptical the NCR agreements will put a dent in Blockbuster's struggling revenue stream.

"The most they are getting out of this is a 5 percent royalty," Pachter speculated. "By putting kiosks in, all it does is to help them cannabalize their own business." Pachter added that Blockbuster probably moved into the kiosk segment because Redbox is moving fast and "if Blockbuster didn't do something, Redbox would own 100 percent of the market." The latest agreement means QuikTrip stores in Arizona, Illinois, Iowa, Georgia, Kansas, Missouri, Nebraska, Oklahoma and Texas will feature Blockbuster-branded DVD kiosks.

Prior to this announcement, NCR operated 4,500 Blockbuster Express kiosks in and around Tom Thumb and other retail stores. Redbox units can be found at Wal-Mart and 7-Eleven stores, among others.

According to Adams Media, Redbox holds about 80 percent of the $1 billion kiosk rental market � a share that Blockbuster and NCR are trying to cut into.

Read more: Blockbuster kiosks headed to 555 QuikTrip stores - Dallas Business Journal

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